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Krekorian’s AB 2153 legislation would require developers to prove their projects have no net gain water use or pay water impact fees

Posted by: Aqua Blog Maven on May 28, 2008 at 6:15 am

From the San Diego Union-Tribune:

The Assembly plans to take up legislation that would force developers to pay to offset increased water use at new projects, much like school impact fees.

The legislation, believed to be unprecedented nationally, comes as water supplies are shrinking, Californians are questioning potential rationing while new homes continue to spring up and lawmakers are in gridlock over building more reservoirs. “The idea is to create a framework by which California can continue to accommodate the need for growth while staying within the inherent limits of our water supply,” said Assemblyman Paul Krekorian, D-Burbank, who is carrying the measure.

An intense lobbying campaign is under way leading up to the floor vote, with builders and business interests marshalling forces to block the bill and environmentalists mounting an aggressive campaign to push the measure along to the Senate. Water agencies are divided. “It’s going to be tough – very tough,” Krekorian said.

Gov. Arnold Schwarzenegger has not taken a position on the bill.

It would definitely signal a shift in the way we think about water, but not everyone is on board:

Krekorian’s measure would require developers to prove their projects have no net gain in water use or pay into a fund to finance conservation projects elsewhere, such as fixing leaky pipes, cleaning up groundwater and recycling. The fee would be capped at 1 percent of the cost of a house, roughly $3,000 on a $300,000 home, or less than $10 a month over the life of a 30-year mortgage, supporters counter.

To Krekorian, that’s a small price to guarantee water for homes. Without the bill, he said, projects could be blocked under existing law that allows water agencies to declare that there is not enough supply to meet the increase in demand. Or ratepayers and taxpayers would continue to subsidize growth, he said.

Builders say that more fees would be another drag on their slumping industry. The California Chamber of Commerce is pitching in to help kill the legislation. “AB 2153 further exacerbates a suffering economy and dismal housing market by imposing an untold tax on new home buyers,” opponents wrote. Business interests argue that new homes and buildings are water-efficient.

Read more from the San Diego Union-Tribune by clicking here.

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